Spacefood Products Will Pay a Dividend of $2

Multiple Choice

Spacefood Products will pay a dividend of $2.40 per share at the end of this year.It is expected that this dividend will grow by 3% per year each year in the future.What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 10%?

A) $24.00
B) $23.97
C) $30.22
D) $34.29
E) $37.76